Yeah, I think it's called "Divx HD", and there's already hardware coming with that certification. I do agree that Sony seems to be missing the boat when it comes to functionality beyond games, and I was personally hoping from something more from a major firmware revision.

Hell, it'd be nice to see them add exFAT support so I can watch movies larger than 4 GB on attached storage (currently only FAT32 is supported on USB mass storage class devices; this means full length HD content usually needs to either a) be copied from a DLNA network share or b) split in to separate files for storage on the FAT32 formatted device).

Whenever they update their Divx support the MKV support should be included (since the new Divx uses MKV files).

As for the rest, agreed. The web browser should just use some custom build of Firefox, and the PS2 backwards compatibility would help bring in the people who want to keep playing their existing PS2 games.